favourable variance
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favourable variance — In standard costing and budgetary control, any difference between the actual and budgeted performance of an organization where this creates an addition to the budgeted profit. For example, this may occur if the actual sales revenue is greater… … Accounting dictionary
Variance (accounting) — In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard amount and the actual amount incurred/sold. Variances can be computed for both costs and revenues.The concept of variance is… … Wikipedia
variance — 1) In standard costing and budgetary control, the difference between the standard or budgeted levels of cost or income for an activity and the actual costs incurred or income achieved. If the actual performance is better than standard then a… … Big dictionary of business and management
variance — In standard costing and budgetary control, the difference between the standard or budgeted levels of cost or income for an activity and the actual costs incurred or income achieved. If the actual performance is better than standard then a… … Accounting dictionary
production cost variance — In standard costing, the variance arising when the standard cost of the actual production is compared with the actual cost incurred. If the standard cost is higher than the actual cost a favourable variance arises, while if the actual cost… … Accounting dictionary
overhead efficiency variance — overhead productivity variance; = productivity variance In a standard costing system, that part of the overhead total variance that arises from the more or less efficient use of the time available to carry out the actual production. It compares… … Accounting dictionary
direct materials price variance — In a standard costing system, a variance arising as part of the direct materials total cost variance. There are two alternative points at which the materials price variance may be established: when the material is purchased or when it is issued… … Accounting dictionary
direct materials usage variance — In a standard costing system, a variance arising as part of the direct materials total cost variance. It compares the actual quantity of material used to carry out production with the standard quantity allowed, and values the difference at the… … Accounting dictionary
production cost variance — In standard costing, the variance arising when the standard cost of the actual production is compared with the actual cost incurred. If the standard cost is higher than the actual cost a favourable variance arises, while if the actual cost… … Big dictionary of business and management
adverse variance — unfavourable variance In standard costing and budgetary control, the differences between actual and budgeted performance of an organization where the differences create a deduction from the budgeted profit. For example, this may occur if the… … Accounting dictionary
